Financial Performance - Revenue decreased from RMB 495.8 million for the six months ended June 30, 2023, to RMB 379.0 million for the six months ended June 30, 2024, representing a decline of approximately 23.5%[2] - Gross profit fell from RMB 28.5 million to RMB 21.7 million during the same period, a decrease of about 23.5%[2] - Adjusted profit decreased significantly from RMB 13.2 million to RMB 1.9 million, reflecting a decline of approximately 85.6%[2] - Operating profit dropped from RMB 16.5 million to RMB 3.6 million, a decline of approximately 78.1%[2] - The company reported a net profit attributable to owners of RMB 0.3 million for the six months ended June 30, 2024, down from RMB 10.8 million in the previous year, a decrease of about 97.2%[2] - The company recorded a profit of approximately RMB 0.3 million for the six months ended June 30, 2024, a decrease of about 96.9% from RMB 10.8 million for the same period in 2023[35] - Adjusted profit for the six months ended June 30, 2024, was RMB 1.9 million, down from RMB 13.2 million in the previous year, reflecting a significant decline[37] Assets and Liabilities - Net asset value increased to RMB 474.4 million as of June 30, 2024, up 27.4% from RMB 372.4 million on December 31, 2023[1] - Total assets decreased from RMB 1,682.7 million as of December 31, 2023, to RMB 1,535.3 million as of June 30, 2024, a reduction of approximately 8.8%[4] - Total liabilities decreased from RMB 1,310.3 million to RMB 1,060.9 million, a decline of about 19.0%[5] - Total liabilities decreased to RMB 1,012,462,000 as of June 30, 2024, from RMB 1,248,876,000 as of December 31, 2023, indicating a reduction of 18.9%[19] - Trade receivables increased to RMB 226,467,000 as of June 30, 2024, compared to RMB 140,719,000 as of December 31, 2023, reflecting a growth of 60.9%[17] Revenue Breakdown - Revenue from construction services for the six months ended June 30, 2024, was RMB 379,026,000, a decrease of 23.5% compared to RMB 495,780,000 for the same period in 2023[10] - Revenue from construction projects was RMB 246.9 million, a decrease of RMB 32.5 million or 11.6% from RMB 279.4 million in the previous period[25] - Revenue from municipal public works increased by RMB 33.2 million or 35.9% to RMB 126.1 million, up from RMB 92.9 million[26] - Revenue from foundation engineering projects plummeted by RMB 51.3 million or 95.5% to RMB 2.4 million, down from RMB 53.7 million[27] - Revenue from specialized contracting projects fell by RMB 66.2 million or 94.9% to RMB 3.6 million, compared to RMB 69.8 million[28] Costs and Expenses - Cost of materials and consumables for the six months ended June 30, 2024, was RMB 146,025,000, down 40.4% from RMB 245,118,000 in 2023[11] - Total cost of revenue decreased by approximately RMB 109.8 million or 23.5% to RMB 357.4 million for the six months ended June 30, 2024[30] - Administrative expenses increased by approximately RMB 3.8 million or 23.3%, primarily due to rising employee costs and professional fees[32] - Financing costs decreased due to reduced factoring interest expenses, partially offset by increased borrowing interest expenses[33] - Income tax expenses decreased in line with the reduction in taxable income from operations in China[34] Dividends and Shareholder Returns - The company does not recommend the payment of any interim dividend for the six months ended June 30, 2024[1] - The company did not declare or pay any dividends for the six months ended June 30, 2024, consistent with the previous year[16] Compliance and Governance - The company has adopted a code of conduct for directors' securities trading, ensuring compliance with the standards set out in the Listing Rules Appendix C3[48] - The audit committee has reviewed the group's financial reporting processes and internal control systems for the six months ending June 30, 2024[52] - The company has appointed a compliance advisor, ensuring adherence to regulatory requirements[50] - The board is satisfied with the company's compliance with the corporate governance code as of June 30, 2024[47] Market Outlook - The construction market in Guangdong Province is expected to continue growing at a compound annual growth rate of approximately 8.3%, reaching about RMB 342.61 billion by 2027[44]
中深建业(02503) - 2024 - 中期业绩